Skeena Resources Ltd. [SKE-TSXV; SKREF-OTCQX-SKREF; RSFB-FSE] said a previously announced private placement financing has been oversubscribed. As a result, the company has elected to upsize the offering.
In a March 19, 2018 press release the company said the offering will now consist of the sale of approximately 9,139,451 units and approximately 4,223,572 flow-through common shares, to raise aggregate gross proceeds of approximately $8.4 million.
Skeena is a junior Canadian mining exploration company that is focused on developing prospective precious and base metal properties in the Golden Triangle area of northwest British Columbia. The company’s primary activities are the exploration and development of the past-producing Snip Mine and recently optioned Eskay Creek Mine, both acquired from Barrick Gold Corp. [ABX-TSX, NYSE].
In addition, the company is performing preliminary exploration on the past-producing Porter Idaho silver mine and has completed a preliminary economic assessment on the Spectrum GJ copper-gold porphyry project. The 43,500-hectare Spectrum-GJ property consists of 93 contiguous mineral claims located approximately 30 km west of Imperial Metals Corp.’s [III-TSX] Red Chris Mine in northwestern B.C.
In April 2017, Skeena announced NI 43-101 Preliminary Economic Assessment results for the project. It said Spectrum-GJ has a 25-year mine life with a low initial capital expenditure of $216 million. Skeena is currently seeking a partner to develop the asset to the Pre-Feasibility stage.
Meanwhile, Skeena said net proceeds of the offering will be used to fund advancement of the company’s Snip and Eskay Creek Projects as well as for working capital purposes.
In its March 19, 2018 press release, Skeena said the units will be offered at a price of $0.60 per unit. Each until will consist of one common share of the company and one-half of one transferable non-flow-through common share purchase warrant.
Each whole warrant shall be exercisable into one additional no-flow-through common share of the company for a period of two years from the closing date of the offering at an exercise price of 90 cents. The flow through shares will be offered at a price of 70 cents per flow through share.
Closing of the offering is now anticipated to occur on around March 29, 2018.
Skeena recently announced the results from the final 12 holes of the 62-hole diamond drill program completed at the Snip gold project. The company said drilling on the eastern portion of the Upper Twin Zone continues to establish grade and geological continuity as demonstrated by 2017 underground drill hole UG17-059, which intersected 8.06 g/t gold over 8.00 metres, including 14.88 g/t gold over 3.32 metres.
The company said a Phase 2 underground drill program, which was expected to commence last month, will focus on further defining the Twin, Upper Twin and 412 Zones as well as exploring the newly defined 200 Footwall targets.
Skeena shares, which fell 1 cent to 60 cents on Tuesday, are trading in a 52-week range of 80 cents and 40 cents.